PUTRAJAYA – The Domestic Trade and Cost of Living Ministry has set up a special task force to conduct a study on establishing the Lemon Law in Malaysia to provide better protection to consumers in the automotive industry.
Minister Datuk Armizan Mohd Ali said the task force, comprising legal experts, will be conducting research and discussions on legislating the Lemon Law, which would give customers the right to price reductions or one-to-one replacements for consistently defective parts.
This effort is part of the ministry’s initiative to implement legal reform to create a more comprehensive consumer protection legal framework in line with current demands.
Armizan said this during a press conference after launching the 2024 Malaysian Consumerism Symposium event here.
The task force will be working on the research from June 1 until September, he said.
“The legal experts will be the consultants to the ministry. We have told them to wrap up the research by the end of September. The timeframe is quite long, but the due process must be followed,” he said.
Armizan said the outcome of this study will serve as the basis for policy considerations at the ministry level, guiding the creation of a new legal framework to strengthen consumer rights.
This includes deciding whether to amend the existing Consumer Protection Act 1999 (Act 599) or establish the Lemon Law as new legislation.
“Following the ministry-level decision, this matter will be brought to the regulatory impact assessment and then to the cabinet for approval.
“The initiative to establish the Lemon Law will be discussed in the March 2025 Parliament session and revisited by the cabinet,” he added.
Despite the current absence of the law, there are existing legal provisions in Malaysia with similar characteristics, providing consumers the right to seek compensation from suppliers and manufacturers, he said.
Armizan said these provisions are enshrined in various laws, such as the Consumer Protection Act 1999 (Act 599), the Contracts Act 1950, the Sale of Goods Act 1957, and the Hire Purchase Act 1967. – June 4, 2024